Consumers At Work Definity Health Experience

1
Consumers At WorkDefinity Health Experience

• August 2005

2
Employers Adopt Consumer Strategies

• UHG consumer portfolio serves over 1 million
  members, 7/1/05.
• 625,000 in HRA plans/375,000 in HDHP/HAS
• Accelerated expansion through acquisition and
  organic growth
• Acquired Golden Rule 2003
• Acquired Definity Health 2004
• Membership 12/31/04 560,000
• Membership 7/1/05 1,100,000
• 5800 employers
• 135 large employers (5000 employees)
• 570 mid-sized employers
• 5190 small employers

3
Confirming Results

• Separate studies validate directional results
• Legacy company data sets offer basis for
  comparison
• Definity data provides longitudinal view
• iPlan data set is deeper, but shorter
• Parallel results delivered
• Early enrollment is skewed by health status
• Changes in utilization signal behavior change
• Improved cost trend

4
Specific Behavior Changes

• From the iPlan study
• Cost stabilization is seen in 3-employer study of
  41,000 continuously enrolled individuals
• Option offering - 1.4
  yr/yr cost trend (2002/2003)
• Option offering - -8.0
  yr/yr cost trend
• Full Replacement offering - -0.1 yr/yr
  cost trend
• Results adjusted for selection risk, plan design
  and network changes.
• Consumer health behavior change
• 2 of 3 plans
• Use of preventive services was 6 higher than
  non-CDH peers
• Emergency room visits/1000 decreased 420
• Office visits decreased 2 18
• Inpatient admissions decreased, ALOS increased
• 1 plan with RX
• Utilization decreased 12
• Use of generics increased 3
• Rx trend 7

5
Parallel Impact
Behavior change observed in full-replacement
Definity Health client

• Type of Service Utilization
  Change
• Hospital IP and OP -8
• Surgeries/Procedures -8
• Physician Visits -18
• X-ray and Lab -8
• All Medical -12
• Rx -6
• Total (weighted average) -11

6
Utilization Trend Comparisons

• Utilization change
• Admits/1000 ? 16.81
• Days/1000? 12.65
• LOS? 5.00

Note Definity Health BOB adjusted for age and
gender.Claims paid through 11/30/2004.
7
Utilization Trend Comparisons

• Utilization change
• ER visits ? 10.23
• Office visits? 2.04
• Lab services? 0.29
• Radiology Services? 2.84

Note Definity Health BOB adjusted for age and
gender.Claims paid through 11/30/2004.
8
Utilization Trend Comparisons

• Utilization change
• Scripts/1000 ? 0.65
• Scripts/Pat. ? 2.74

Note Definity Health BOB adjusted for age and
gender.Claims paid through 11/30/2004.
9
Utilization Trend Comparisons
1/1/20049/30/2004.
10
Impact on the Chronically Ill
Utilization Change

• ER visits ? 16.34
• HbA1c Tst ? 15.58
• Lipid Tst ? 13.02
• Proteinuria Tst? 10.56

• ER visits ? 17.47
• Beta Blocker ? 4.13
• Asth Scripts ? 17.02

• Well Baby Visits ? 0.42
• Well Child Visits ? 1.70
• Early Child Immun ? 0.77